The End of the Chevron Doctrine Is Bad for Business

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Two recent Supreme Court decisions produced sweeping changes to how regulation works in the United States, shifting power from agencies to the courts.

Recent Supreme Court decisions on regulatory powers will have a major impact on business investment — but not in the way most people think.

Investment will now take place against the backdrop of the “judicial veto,” where a wide range of potential litigants and sympathetic judges will decide which regulations actually go into effect, and when. According to conventional wisdom, scaling back the regulatory state will help businesses. However, the court’s rulings will suppress business investment in three unintended ways.

 

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